Ghana has proposed a cut to a mining levy as part of efforts to ease industry concerns over a planned increase in gold royalties, as the government seeks to raise revenue from high bullion prices without deterring investment. The proposal emerged during talks between officials and mining companies, CNBC Africa reported.
Under the proposed reforms, Ghana would replace its current flat royalty rate with a sliding scale ranging from 5% to 12%, linked to global gold prices. The structure would allow the state to capture a larger share of windfall gains when prices are high, while maintaining lower rates when prices soften, based on details shared by industry representatives.
Mining firms have warned that higher royalties could raise operating costs and affect project viability, particularly for marginal mines. In response, Finance Minister Cassiel Ato Forson has offered to reduce the Growth and Sustainability Levy, currently set at 3%, by two percentage points as a compromise measure, the Ghana Chamber of Mines said.
According to The Ghana Report, negotiations are ongoing as industry groups push for further adjustments, including wider royalty bands and greater clarity on implementation timelines. Analysts say the outcome will be closely watched, as it could shape investor sentiment toward Ghana’s mining sector and influence fiscal reform debates across Africa’s gold-producing countries.
